Archivados
Info Inbox
info@turnpack.com
Fwd: Your Path To Partnership.
Turnpack Inv 372028/RI and 373729/RI, CM 373158/RM and 374344/RM due Amada / CN 320717
Sales and Use Tax Applies to Digital Products Beginning January 1, 2027
Sales and Use Tax Applies to Digital Products Beginning January 1, 2027
|
Sales and Use Tax Applies to Digital Products Beginning January 1, 2027Beginning January 1, 2027, the definition of tangible personal property in the Sales and Use Tax Law will be expanded to include digital products and any copyright or patent interests associated with those digital products. As a result, retail sales of digital products in this state or the storage, use, or other consumption in this state of digital products purchased from any retailer may be subject to sales and use tax. This change is the result of a new law and generally affects:
What is a digital product?A digital product is prewritten computer software transferred on tangible storage media, transferred electronically, or accessed remotely. Prewritten computer software is computer software that is held or exists for general or repeated sale or lease, even if it was initially developed on a custom basis or for in-house use, including the combination of two or more prewritten programs. What items are not digital products?The following items are not considered digital products under the new law:
What digital products are exempt?The following digital products are exempt under the new law:
Threshold rule that may shift tax liability from retailer to purchaserWhen the aggregate gross receipts from sales of digital products by a retailer to a purchaser that are transferred electronically or accessed remotely exceed $5 million in a calendar year or preceding calendar year, the tax liability may shift from the retailer to the purchaser. When this happens, the purchaser may be required to register for a Use Tax Direct Payment Permit and report the tax directly to us. Refer to our Tax Guide for Retailers and Purchasers of Digital Products for more information. Place of sale and use of digital productsFor local and district tax reporting purposes, the place of sale of digital products transferred electronically or accessed remotely is generally the customer’s address, and the place of use is the place where the person accessing the digital product is located. Refer to our Tax Guide for Retailers and Purchasers of Digital Products for more information. RegistrationDigital product sellers in California who are not currently registered with us must register for a seller’s permit, file sales and use tax returns, and report and pay tax on retail sales of digital products. Out-of-state sellers of digital products engaged in business in this state as defined in Revenue and Taxation Code section 6203 must register with us for a Certificate of Registration—Use Tax, collect and report use tax from retail sales of digital products sold to California consumers, and pay the tax to us. Our Online Services offers a convenient, fast, and free way to register online for a permit, license, or account. Legislation informationSenate Bill 122 (Stats. 2026, ch. 23) was signed into law on June 29, 2026. For more informationPlease refer to our Tax Guide for Retailers and Purchasers of Digital Products. You may also call our Customer Service Center at 1‑800‑400‑7115 (TTY:711). Customer service representatives are available Monday through Friday from 7:30 a.m. to 5:00 p.m. (Pacific time), except state holidays. To be added to our distribution list regarding upcoming interested parties meetings to discuss regulatory issues related to a specific topic, including digital products, or to all topics in general, please send your contact information to PPDD-BTC.InformationRequests@cdtfa.ca.gov.
Thank you for connecting with us.
|
|
por "CDTFA" <noreplynotifications@notifications.cdtfa.ca.gov> - 01:56 - 15 sep. 2026
Seguimientos
-
Re: FW: Sales and Use Tax Applies to Digital Products Beginning January 1, 2027
We only sell this: Custom computer software -> so we should be exempt which brings up a good point on items we have paid tax on before. Let me check a few thingsOn Tue, Sep 15, 2026 at 11:18 AM Turnpack LLC <info@turnpack.com> wrote:Do we sell this?
This change is the result of a new law and generally affects:
· Sellers of prewritten computer software
· Prewritten Software-as-a-Service (SaaS) providers
· Businesses that license or provide remote access to prewritten software
· Purchasers of digital products
Thank you for your time,
Lorena Carrillo
From: CDTFA <noreplynotifications@notifications.cdtfa.ca.gov>
Sent: Tuesday, September 15, 2026 10:56 AM
To: info@turnpack.com
Subject: Sales and Use Tax Applies to Digital Products Beginning January 1, 2027Sales and Use Tax Applies to Digital Products Beginning January 1, 2027
Beginning January 1, 2027, the definition of tangible personal property in the Sales and Use Tax Law will be expanded to include digital products and any copyright or patent interests associated with those digital products. As a result, retail sales of digital products in this state or the storage, use, or other consumption in this state of digital products purchased from any retailer may be subject to sales and use tax.
This change is the result of a new law and generally affects:
· Sellers of prewritten computer software
· Prewritten Software-as-a-Service (SaaS) providers
· Businesses that license or provide remote access to prewritten software
· Purchasers of digital products
What is a digital product?
A digital product is prewritten computer software transferred on tangible storage media, transferred electronically, or accessed remotely.
Prewritten computer software is computer software that is held or exists for general or repeated sale or lease, even if it was initially developed on a custom basis or for in-house use, including the combination of two or more prewritten programs.
What items are not digital products?
The following items are not considered digital products under the new law:
· Digital assets (such as cryptocurrency)
· Digital audio works (such as music, spoken recordings, and ringtones)
· Digital audiovisual works (such as movies and videos with sounds)
· Digital books (also known as eBooks)
· Digital infrastructure (such as cloud platforms that allow customers to create, deploy, or run their own software applications)
· Digital video game products
· Digital visual works (such as computer-generated artwork)
What digital products are exempt?
The following digital products are exempt under the new law:
· Digital products representing a service, not including SaaS
· Custom computer software
· Digital products transferred with reproduction and distribution rights
· Digital products purchased solely for use outside of California
Threshold rule that may shift tax liability from retailer to purchaser
When the aggregate gross receipts from sales of digital products by a retailer to a purchaser that are transferred electronically or accessed remotely exceed $5 million in a calendar year or preceding calendar year, the tax liability may shift from the retailer to the purchaser. When this happens, the purchaser may be required to register for a Use Tax Direct Payment Permit and report the tax directly to us. Refer to our Tax Guide for Retailers and Purchasers of Digital Products for more information.
Place of sale and use of digital products
For local and district tax reporting purposes, the place of sale of digital products transferred electronically or accessed remotely is generally the customer’s address, and the place of use is the place where the person accessing the digital product is located. Refer to our Tax Guide for Retailers and Purchasers of Digital Products for more information.
Registration
Digital product sellers in California who are not currently registered with us must register for a seller’s permit, file sales and use tax returns, and report and pay tax on retail sales of digital products.
Out-of-state sellers of digital products engaged in business in this state as defined in Revenue and Taxation Code section 6203 must register with us for a Certificate of Registration—Use Tax, collect and report use tax from retail sales of digital products sold to California consumers, and pay the tax to us.
Our Online Services offers a convenient, fast, and free way to register online for a permit, license, or account.
Legislation information
Senate Bill 122 (Stats. 2026, ch. 23) was signed into law on June 29, 2026.
For more information
Please refer to our Tax Guide for Retailers and Purchasers of Digital Products. You may also call our Customer Service Center at 1‑800‑400‑7115 (TTY:711). Customer service representatives are available Monday through Friday from 7:30 a.m. to 5:00 p.m. (Pacific time), except state holidays.
To be added to our distribution list regarding upcoming interested parties meetings to discuss regulatory issues related to a specific topic, including digital products, or to all topics in general, please send your contact information to PPDD-BTC.InformationRequests@cdtfa.ca.gov.
Thank you for connecting with us.
em-1557
--Christopher Berger
por Chris Berger - 02:22 - 15 sep. 2026-
Re: FW: Sales and Use Tax Applies to Digital Products Beginning January 1, 2027
Yes that's what I meant. We have sold Software products in CA before but they'd be under Custom Software so there should have been no tax on it. I will checkOn Tue, Sep 15, 2026 at 11:25 AM Info @ Turnpack <info@turnpack.com> wrote:This is for us to start taxing CA sales. NOT what we buy.Lorena Carrillo
Office Manager
Office: 480-331-1878
Direct Line: 781-938-0069
NEW ADDRESS: 6922 Via Northgate Ste 101, Mesa, AZ 85212
lcarrillo@turnpack.com | www.turnpack.com
https://www.turnpack.com/midas-rework/delidderOn Tue, Sep 15, 2026, 11:21 AM Christopher Berger <cberger@turnpack.com> wrote:We only sell this: Custom computer software -> so we should be exempt which brings up a good point on items we have paid tax on before. Let me check a few thingsOn Tue, Sep 15, 2026 at 11:18 AM Turnpack LLC <info@turnpack.com> wrote:Do we sell this?
This change is the result of a new law and generally affects:
· Sellers of prewritten computer software
· Prewritten Software-as-a-Service (SaaS) providers
· Businesses that license or provide remote access to prewritten software
· Purchasers of digital products
Thank you for your time,
Lorena Carrillo
From: CDTFA <noreplynotifications@notifications.cdtfa.ca.gov>
Sent: Tuesday, September 15, 2026 10:56 AM
To: info@turnpack.com
Subject: Sales and Use Tax Applies to Digital Products Beginning January 1, 2027Sales and Use Tax Applies to Digital Products Beginning January 1, 2027
Beginning January 1, 2027, the definition of tangible personal property in the Sales and Use Tax Law will be expanded to include digital products and any copyright or patent interests associated with those digital products. As a result, retail sales of digital products in this state or the storage, use, or other consumption in this state of digital products purchased from any retailer may be subject to sales and use tax.
This change is the result of a new law and generally affects:
· Sellers of prewritten computer software
· Prewritten Software-as-a-Service (SaaS) providers
· Businesses that license or provide remote access to prewritten software
· Purchasers of digital products
What is a digital product?
A digital product is prewritten computer software transferred on tangible storage media, transferred electronically, or accessed remotely.
Prewritten computer software is computer software that is held or exists for general or repeated sale or lease, even if it was initially developed on a custom basis or for in-house use, including the combination of two or more prewritten programs.
What items are not digital products?
The following items are not considered digital products under the new law:
· Digital assets (such as cryptocurrency)
· Digital audio works (such as music, spoken recordings, and ringtones)
· Digital audiovisual works (such as movies and videos with sounds)
· Digital books (also known as eBooks)
· Digital infrastructure (such as cloud platforms that allow customers to create, deploy, or run their own software applications)
· Digital video game products
· Digital visual works (such as computer-generated artwork)
What digital products are exempt?
The following digital products are exempt under the new law:
· Digital products representing a service, not including SaaS
· Custom computer software
· Digital products transferred with reproduction and distribution rights
· Digital products purchased solely for use outside of California
Threshold rule that may shift tax liability from retailer to purchaser
When the aggregate gross receipts from sales of digital products by a retailer to a purchaser that are transferred electronically or accessed remotely exceed $5 million in a calendar year or preceding calendar year, the tax liability may shift from the retailer to the purchaser. When this happens, the purchaser may be required to register for a Use Tax Direct Payment Permit and report the tax directly to us. Refer to our Tax Guide for Retailers and Purchasers of Digital Products for more information.
Place of sale and use of digital products
For local and district tax reporting purposes, the place of sale of digital products transferred electronically or accessed remotely is generally the customer’s address, and the place of use is the place where the person accessing the digital product is located. Refer to our Tax Guide for Retailers and Purchasers of Digital Products for more information.
Registration
Digital product sellers in California who are not currently registered with us must register for a seller’s permit, file sales and use tax returns, and report and pay tax on retail sales of digital products.
Out-of-state sellers of digital products engaged in business in this state as defined in Revenue and Taxation Code section 6203 must register with us for a Certificate of Registration—Use Tax, collect and report use tax from retail sales of digital products sold to California consumers, and pay the tax to us.
Our Online Services offers a convenient, fast, and free way to register online for a permit, license, or account.
Legislation information
Senate Bill 122 (Stats. 2026, ch. 23) was signed into law on June 29, 2026.
For more information
Please refer to our Tax Guide for Retailers and Purchasers of Digital Products. You may also call our Customer Service Center at 1‑800‑400‑7115 (TTY:711). Customer service representatives are available Monday through Friday from 7:30 a.m. to 5:00 p.m. (Pacific time), except state holidays.
To be added to our distribution list regarding upcoming interested parties meetings to discuss regulatory issues related to a specific topic, including digital products, or to all topics in general, please send your contact information to PPDD-BTC.InformationRequests@cdtfa.ca.gov.
Thank you for connecting with us.
em-1557
--Christopher Berger--Christopher Berger
por Chris Berger - 02:41 - 15 sep. 2026
-
